Netflix under probe in Korea over potential tax avoidance

Netflix’s regional office in South Korea is being investigated for alleged tax avoidance, according to industry sources on Thursday.

The National Tax Service made its first visit to the Netflix‘s office in Seoul and launched a probe on Wednesday.

The NTS suspects the global streaming giant might have intentionally avoided paying tax by reporting fiscal deficits after sending large-sized management consultation fees to the company‘s US-based headquarters.

Netflix’s officials confirmed that the NTS made a visit on Wednesday, and added that the company cooperated fully with the investigation.

By Shim Woo-hyun (ws@heraldcorp.com)